The familiar Las Vegas strip will look very different this week, as all casinos, restaurants, bars and other ‘non-essential’ businesses will close their doors as part of a state-wide shut down. Across the country, other state governments are banning any large social gatherings in an attempt to curb the spread of coronavirus.
The city of Las Vegas attracts around 40 millions visitors from around the world every year, most of whom come for the casinos and nightlife of the strip. It’s unclear at the moment what will happen to the hundreds of businesses and thousands of workers who rely on tourism for their income.
Nevada Govenor Steve Sisolak has ordered a 30-day shutdown, but there’s no telling if the shutdown will be lifted or extended after the original period.
The question on everybody’s mind is how long can businesses survive? The answer varies depending on who you ask – some analysts say that MGM Resorts International and Caesars Entertainment have enough money to last around eight to 16 months. Wynn Resorts and Las Vegas Sands could survive up to 20 months, according to Macquarie research analyst Chad Beynon.
“It ranges from five months to a year and a half,” Beynon said, “because of obligations they have to the banks, to their employees and to projects.”
“The daily burn will remain the same,” Beynon said. “The only thing that could change by the day is if you’re laying off employees – but you can only cut so much. I don’t think the daily burn changes. Only the amount of time they have left changes.”
According to the American Gaming Association, each month Nevada remains in lock down costs around $4.7 billion in estimated economic losses.